Influence factors on financial statements disclosure of Indonesian local governments

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This study aims to examine the factors that affect the level of disclosure of local government financial reports. This paper uses such independent variables as budget expenditure of the local government, government size, and capital expenditure. The financial records of Indonesian local governments that have undergone audit by the supreme agency are analyzed in this study. For the 2020 timeframe, 485 local/city governments in Indonesia served as the research samples, and purposive sampling was employed as the sampling method. SPSS is utilized to support multiple linear regression, which is the data analysis method used in this study. The test findings revealed that budget expenditure (β = 0.274; p < 0.05), government size (β = 0.216; p < 0.05), and capital expenditure (β = 0.178; p < 0.05) have a significant effect on the level of local government financial statements disclosure. It is envisaged that the findings of this study would enable local governments, particularly districts or cities, to better maximize the disclosure of local government financial statements in compliance with government regulation. Local governments will be able to open up information that is easily accessible with the aid of ever-improving technology.

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    • Table 1. Final sample summary
    • Table 2. Variables measurement
    • Table 3. Descriptive statistic summary
    • Table 4. Analysis of multiple regression
    • Conceptualization
      Supriono Supriono, Eka Hariyani
    • Data curation
      Supriono Supriono, Sem Paulus Silalahi, Rheny Afriana Hanif, Khoirul Aswar
    • Formal Analysis
      Supriono Supriono, Khoirul Aswar
    • Methodology
      Supriono Supriono, Eka Hariyani, Sem Paulus Silalahi, Rheny Afriana Hanif, Khoirul Aswar
    • Resources
      Supriono Supriono
    • Software
      Supriono Supriono, Eka Hariyani
    • Supervision
      Supriono Supriono
    • Validation
      Supriono Supriono, Eka Hariyani, Rheny Afriana Hanif, Khoirul Aswar
    • Writing – original draft
      Supriono Supriono
    • Visualization
      Eka Hariyani, Sem Paulus Silalahi, Rheny Afriana Hanif
    • Writing – review & editing
      Eka Hariyani, Sem Paulus Silalahi, Rheny Afriana Hanif, Khoirul Aswar
    • Investigation
      Sem Paulus Silalahi, Rheny Afriana Hanif, Khoirul Aswar